Telecom Reliance Jio on Wednesday said it has paid Rs 30,791 crore, including accrued interest, to the Department of Telecom to clear the entire spectrum payments liabilities that the company acquired before March 2021 auctions.
The payments include the liabilities pertaining to the spectrum acquired in auctions of year 2014, 2015, 2016, and the spectrum acquired in the year 2021 through trading of right to use with Bharti Airtel Limited, the company said.
''Reliance Jio Infocomm (RJIL)... has paid Rs 30,791 crore (including accrued interest) to the Department of Telecom towards prepayment of the entire deferred liabilities pertaining to spectrum acquired in auctions of year 2014, 2015, 2016 and the spectrum acquired in year 2021 through trading of right to use with Bharti Airtel,'' the company said in a statement.
The company had acquired 585.3 MHz spectrum through these auctions and trading.
''The company estimates that the above prepayments will result in interest cost savings of around Rs 1,200 crore annually, at the current interest rates,'' the statement said.
Reliance Jio has cleared all dues even after government has given options to telecom operator of availing four years moratorium on all spectrum related payments.
RJIL had executed the first tranche of prepayment on the anniversary date in the month of October 2021 pertaining to spectrum acquired in auction in the year 2016.
Subsequent to Department of Telecom's decision in the month of December 2021 providing the telcos the flexibility to prepay their deferred spectrum liabilities on any date, RJIL has now prepaid in the month of January 2022, the entire deferred liabilities acquired in auction in the year 2014 and 2015 as well as the spectrum acquired through trading.
These liabilities were due in annual instalments from financial year 2022-23 to 2034-2035 and carried interest rate between 9.30 to 10 per cent per annum with an average residual period of more than seven years.
Bharti Airtel last month paid Rs 15,519 crore to the Department of Telecom towards prepayment of the entire deferred liabilities pertaining to spectrum acquired in auction of year 2014.
(With PTI inputs)